Johnson Says London Property Prices Are Desirable Problem

London Mayor Boris Johnson said high
property prices are “the right problem to have” and that
technology startups are attracted to the city regardless of its
“creaking” infrastructure.

In a Bloomberg Television interview, Johnson said the U.K.
capital is Europe’s answer to America, drawing in migrants
seeking a better life.

London’s property prices have surged in recent years,
boosted by record-low interest rates and cash-rich foreigners
seeking a haven from political turmoil. Asking prices in the
capital rose 14.5 percent in June from a year earlier to 589,776
pounds ($1 million), more than double the U.K. average value,
property website operator Rightmove Plc said today.

“It’s the right problem to have,” Johnson said in a joint
interview with former New York Mayor Michael Bloomberg, while
acknowledging that the influx of wealthy foreigners made
property in London expensive for those already there. “It’s a
massive premium here in London.”

Home prices in 17 of London’s 32 boroughs were above the
city average this month, according to Rightmove. In four, the
average value was more than 1 million pounds. In Kensington and
Chelsea, Britain’s most expensive, it was 2.38 million pounds.

Prime Minister David Cameron, the leader of Johnson’s
Conservative Party, has pledged to cut immigration, a stance
that pits him against those such as Johnson who see inward
migration as an engine of growth. Net migration to the U.K. was
212,000 last year, up from 177,000 in 2012, according to
official data published last month.

British Reserve

“London is turning culturally and philosophically into the
America of the European Union,” Johnson said. “It’s the place
where people want to go. It’s the place where people want to be
together.” He also said the British need to change their
attitude to the rich.

“We have a natural British reserve about accumulating
billions,” Johnson said. “There’s nothing sinful or wrong
about amassing wealth. The banks and the venture capital people
need to be as daring and risk-taking as they can be.”

Johnson said the technology startups he wanted to attract
to London weren’t put off by poor facilities. “They love that
stuff,” he said. “The older and creakier, the better.”

The mayor said he was proud that London’s immigrant
population now matched New York’s. “We have even more languages
spoken than New York,” he said. “The original language of
London was of course Latin. Pushy Italian immigrants founded our
city -- we’re grateful to them.”

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LP, parent of Bloomberg News.